McBride plc (LSE:MCB) -- Resilient Performance Amid Economic Challenges | Alluvial Capital 2024 Q4

Benefiting from Consumer Downtrading and Operational Improvements

Apr 13, 2025

Summary

Strong volume growth and improved operating income.
Reduction in net debt and plans to resume dividends.
Defensive positioning in a challenging economic environment.
Shares trade at a significant discount to fair value.
Potential for continued share price appreciation.

In the Q4 2024 letter, Alluvial Capital highlights McBride plc (LSE:MCB, Financial) as a key holding benefiting from consumer downtrading trends. The British private label manufacturer has successfully navigated input cost challenges, achieving strong volume growth and reducing debt. McBride's defensive nature and operational improvements position it well for continued performance, with shares trading at an attractive valuation.

"McBride’s January 17 first half trading update was, as the Brits might say, 'cracking.' The company revealed strong volume growth and operating income up 8% year-over-year. Net debt fell to a new low of 117.6 million, and the company indicated it would resume paying dividends next fiscal year." — Dave Waters, Alluvial Capital Management, Q4 2024 Fund Letter

Read full letter at gurufocus Alluvial Capital 2024 Q4 page.

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